Xbox Raises Console Prices Up To $150 As AI Depletes Memory And Storage Supply

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Topline

Xbox is raising the prices of its consoles for the second time in less than a year, the Microsoft division announced Thursday, ratcheting up prices by at least $100 as the artificial intelligence boom has depleted storage and memory hardware used by video game consoles.

Living room with a Microsoft Xbox Series X home video game console alongside a television and soundbar.

Photo by Phil Barker/Future Publishing via Getty Images

Key Facts

The price for Xbox consoles will increase by $100 for 512 GB models and $150 for 1 TB models, according to a statement, which added the 2 TB models are being sunsetted.

The global price hike will go into effect Aug. 1

Xbox said it “hoped another price increase would not be necessary,” citing console storage and memory prices that have more than doubled amid skyrocketing demand for AI infrastructure.

“We expect another doubling by the fall of 2027,” the statement added.

How Much Will Xbox Consoles Cost After The Price Hike?

The 512 GB model of the Xbox Series S, the cheapest console offered by Xbox, will jump from $399 to $499. The 1 TB model of the Series S will increase to $550. The 1 TB version of the all-digital Xbox Series X, which contains superior hardware to the Series S, will cost $749. The disc drive version of the 1 TB Series X will rise from $649 to $799.

Crucial Quote

“The entire consumer electronics industry is struggling with the current components crisis, but the effects are particularly hard on consoles,” the statement said. “Unlike phones, computers, speakers, and other consumer devices, consoles are typically not sold at a profit, but instead for less than they cost to make.”=